A firm has $ 1.5 million in sales, a Lerner index of 0.57, and a marginal cost
Question:
A firm has $ 1.5 million in sales, a Lerner index of 0.57, and a marginal cost of $ 50, and competes against 800 other firms in its relevant market.
a. What price does this firm charge its customers?
b. By what factor does this firm mark up its price over marginal cost?
c. Do you think this firm enjoys much market power? Explain.
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Related Book For
Managerial Economics and Business Strategy
ISBN: 978-0073523224
8th edition
Authors: Michael Baye, Jeff Prince
Question Posted:
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